Breach of fiduciary duty still No.1 investor charge

Breach of fiduciary duty still No.1 investor charge
But overall, Finra says number of arb cases down substantially last year
FEB 24, 2012
Arbitration cases filed with the Financial Industry Regulatory Authority Inc. fell to 4,729 last year, down 17% from 2010 and the lowest since 2007. Breach of fiduciary duty continues to be the most commonly claimed misstep, raised in 2,589 of the cases, according to arbitration statistics updated by Finra today. Other top allegations include negligence (2,249), misrepresentation (2,102) and failure to supervise (2,007). Investors typically allege multiple wrongdoings in their arbitration complaints. Cases tend to swell after severe market disruptions, as in 2009 following the financial crisis. That year, 7,137 cases were filed, a jump of 43% from 2008. In 2003, after the dot.com implosion, cases surged to a record 8,945.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management